Recruiting & selection of FC's in HDFC SLIC By VINOD final

HDFC STANDARD LIFE INSURANCE, PUNE

A REPORT ON

RECRUITMENT AND SELECTION AT

HDFC STANDARD LIFE INSURANCE COMPANY LTD

BY :- VINOD PRAJAPAT


PUNE

DATE :- 25-09-2009

A PROJECT REPORT

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MUENCHEN INTERNATIONAL BUSINESS SCHOOL,PUNE

http://images.google.co.in/imgres?imgurl=http://www.domain-b.com/finance/insurance/200204apr/hdfc-standard-life-insurance%20logo.gif&imgrefurl=http://www.domain-b.com/finance/insurance/200204apr/20020404_equity.html&h=64&w=173&sz=3&hl=en&star


ON

RECRUITMENT AND SELECTION

AT


SUBMITTED TOMIBSPUNE

AS A PART FULFILLMENT OF

MBA + POST GRADUATE PROGRAME IN MANAGEMENT

SESSION: 2008 – 2010

SUBMITTED BY:- VINOD PRAJAPAT

MUENCHEN INTERNATIONAL BUSINESS SCHOOLPUNE

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ACKNOWLEDGEMENT

At the very outset, I would like to take golden opportunity of thanking

those persons without whose guidance, co-operation, inspiration and

suggestion it would have been impossible for me to accomplish the

project successfully.

First of all I would like to thank Mr. Anand Gawrade. Channel

development Manager of HDFC SLIC, for his kind guidance and

necessary support during the project.

I also take this opportunity to extend my heartfelt gratitude to others

who directly of indirectly helped me, by providing me necessary

information required for successful completion of the project.

Vinod kumar Prajapat

Email Id:[email protected]

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DECLARATION

This project well bred “RECRUITMENT & SELECTION OF FINANCIAL

CONSULTANT OF HDFC STANDARD LIFE INSURANCE ” presence proposes by me in the preferential discharge of obligations for the reward of MBA + PGPM From MIBS, Pune.

I somewhere different for any other degree, credential have not

submitted this effort.

Whole snitches of tidings and assist are genuine and have been

accredited in the report.

VINOD PRAJAPAT

M.B.A-3RD SEM

MIBS , PUNE

Roll no-2008/MBA/63

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APPENDICES

Topic Page No.

A. Executive Summary :- 8

B. Objective of the study :- 8

C. Introduction of HDFC SLIC :- 9 - 15

1. Introduction. 92. The Background of Company. 123. Joint Venture. 144. Organisation Hierrachy. 15

D. The Promoters :- 16-21

1. Jointventure & Associated Undertakings. 162. Strength. 173. Weakness. 21

E. The Company And Its Product Line :- 22-32

1. Competitors by Product 22

2. Life Stages. 27

F.Features Of The Product & Benefits :- 33-38

1. Accidental Death Benefit. 34

2. Critical Illness. 34

3. Double Sum Assured Benefits. 34

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4. Waiver of Premium Benefit 35

5. Accelerated Sum Assured. 35

6. Term Assurance Plan. 35

7. Money Back Plan. 36

8. Endowment Assurance Plan. 36

9. Loan Cover Term Assurance. 36

G. Marketing Strategies :- 39-48

1. Reason For Their Good Condition. 39

2. Branch Location Site Map. 46

3. Advertisement and sales promotion 47

H. Recruitment Of FC’s :- 49-56

1. Business Description. 49

2. Excellent Opportunity. 50

3. Recruitment Of FC’s. 52

4. Benefits To FC’s. 53

I. Research Methodology :- 57-59

1. Objectives Of Research Project. 572. Research Plan. 583. Research Design. 584. Developing the Research Plan. 585. Collection Of Data. 59

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J. Data Analysis, Interpretation And Presentation :- 60-76

K. SWOT Analysis :- 77-78

1. Strength. 772. Weakness. 773. Opportunities. 784. Threats. 78

L. Conclusions & Suggestions :- 79-81

1. Conclusions. 792. Suggestions. 80

M. Annexure:- 82-85

N. Bibiliography :- 86

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A. EXECUTIVE SUMMARY:-

Project Title: RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT Name of the organization: HDFC SLIC.

Place of the work: F.C. Road, PUNE

Organizational Guide: Mr. Anand Gawrade

Duration: 1st April to 31st May

B. Major objectives:

To study of the market .

To study of the perfect market for HDFC SLIC.

To approach to the interested people towards HDFC SLIC.

Research Methodology:

Market research/survey

Area of research

I have done the research in Pune Central, Pune University, Big Bazar,

Mcdonald,BSNL office,Post office and other places in Pune.

Major Findings:

There are more then one people live in Pune.

Only more then 25% people have the knowledge of investment in HDFC

SLIC.

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C. HDFC STANDARD LIFE INSURANCE

1-INTRODUCTION:-

HDFC Standard Life Insurance Company Ltd. offers a range of individual and

group insurance solutions. It is a joint venture between Housing Development

Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance

institution and one of the subsidiaries of Standard Life plc, leading providers of

financial services in the United Kingdom. The Standard Life group has been

looking after the financial needs of customers for over 180 years. It is a leading

pension’s provider in the UK. Both the promoters are well known in their

respective fields of activities. For more details you may log on to

http://www.hdfcinsurance.com

Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants

Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute

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of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountan

Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland

Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005

Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.

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Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General lectric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.

Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

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2 THE BACKGROUND

HDFC LIMITEDHDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets..

Organisational Goals

HDFC's main goals are to a) develop close relationships with individual households, b) maintain its position as the premier housing finance institution in the country,c) transform ideas into viable and creative solutions,d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base.

HDFC operates through 75 location throughout the country with its Corporate Headquarters in Mumbai,India.HDFC also has an

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international office in Dubai, U.A.E.,with service associates in Kuwait, Oman and Qatar.

STANDARD LIFE GROUP

The Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life was reincorporated as a mutual assurance company in 1925.The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely remained the structure of the group until 1996, when it opened a branch in Frankfurt, Germany with the aim of

exporting its UK life assurance and pensions operating model to capitalise on the opportunities presented by EC

Directive 92/96/EEC (the “Third Life Directive”) and offer a product range in that market with features which local providers were unable to offer. In the 1990s, the group also sought to diversify its operations into areas which complemented its core life assurance and pensions business, with the intention of positioning itself as a broad range financial services provider.

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3. JOINT VENTURE

HDFC Standard Life Insurance Company LtdHDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India And UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard LifeInsurance Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life brings to you a whole range of insurance Solutions be it group or individual or NAV services for Corporations, they can be easily customized as per specific needs.

HDFC Standard Life Insurance India boasts of covering

around 8.7 lakh lives by March'2007. The gross incomes

standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer.

VISION STATEMENT

“The most successful and admired life insurance company, which mean that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry.In short, “The most obvious choice for all”.

Admired mean the company should be known for its standards. Not only customers, but also the competing life insurance companies should

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benchmark against HDFC SLI a nutshell, even the IRDA should give an example of

HDFC SL as a guiding principle.

4. ORGANIZATION CHART :

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Chairman

MD

Retail Marketing MMMarkeMMar

Alternative Chanel Operation Chanel Human Resource

Regional Manager

Zonal Manager

Territory Manager

Branch Manager

Asst. B.M.

Business Dev. Mgr.

Sales Dev. Mgr.

Territory Manager

Branch Manager

Channel Executive

Team Manager

Operation Manager

HR Executive



D. THE PROMOTERS

1.Joint ventures and associated undertakings

Country of registration or Share class Name incorporation and proportion held Year end Nature of businessHeng An Standard Life China Ordinary shares 50.0% 31 Dec Life assuranceHDFC

Standard Life Insurance Company Limited** IndiaOrdinary shares 18.6% 31 Mar

Life assuranceHDFC Asset Management Company Limited* **

India Ordinary shares 49.9% 31 Mar Investment management*

Owned by a subsidiary undertaking of the Company.**

The Company also has a 14.5% interest in Housing Development Finance

Corporation Limited (“HDFC Limited”). HDFC Limited owns 81.4% and 50.1%of

HDFC Standard Life Insurance Company Limited and HDFC Asset Management

Company respectively. This gives theGroup an effective interest in thesecompanies

of 30% and 57% respectively. The Company does not exercise dominant influence

over either of these joint ventures.The current operations of these companies are

not significant in relation to the accounts of the Group.

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2.Strength:-

A wide geographic reach, growing clients, and a diversified portfolio of

products and services.

.

Premium Payment

This section gives you all the details that you may require to pay your premium

and make it a hassle free experience. Along with various premium payment options

currently available to you, we have also drawn up a Checklist of details that you

will need in case you are paying through cheque or demand draft.

7 Easy Ways to pay your premium:

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At any of Our branches

You can deposit Cheque / Demand Draft drawn in favour of “HDFC

SLIC” at any of Our branch during the following business hours

Monday to Friday : 9.30 AM to 4.30 PM (For Cash)Monday to Friday : 9.30 AM to 5.00 PM (For Cheque)Saturday : 9.30 AM to 12.00 Noon (For Cash & Cheques) Closed on Sundays

Postage / Courier

You can send cheques and demand drafts drawn in favour of HDFC SLIC to any of

our branch offices

Online Payment

You can make online payment of premium anytime and from any location, at a

click of the mouse by using the Online payment facility. It is currently offered to

all the policyholders who are registered users of billjunction.com or have net

banking facility with any of the following banks - HDFC Bank, ICICI Bank, Axis

Bank, State Bank of India, Punjab National Bank, Union Bank of India, Bank of

Baroda

Drop Boxes

You can drop cheques and demand drafts drawn in favour of HDFC SLIC into any

of our drop boxes installed at various locations in various cities.

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Electronic Clearing Service (ECS) or Auto Debit facility of RBI

You can also pay renewal premiums through Electronic Clearing Service (ECS) of

Reserve Bank of India (RBI) presently available in following 61 cities

Agra, Ahmedabad, Allahabad, Amritsar, Aurangabad, Bangalore, Bardhaman, Baroda, Bhilwara,

Bhopal, Bhubaneshwar, Calicut, Chandigarh, Chennai, Cochin, Coimbatore, Dehradun, Delhi,

Durgapur, Erode, Gorakhpur, Guwahati, Gwalior, Hubli, Hyderabad, Indore, Jabalpur, Jaipur,

Jalandhar, Jammu, Jamshedpur, Jodhpur, Kanpur, Kolhapur, Kolkata, Lucknow, Ludhiana,

Mangalore, Mumbai, Mysore, Nagpur, Nellore, Panjim, Patna, Pune, Raipur, Rajkot, Ranchi,

Salem, Shimla, Sholapur, Siliguri, Surat, Thirupur, Tirupati, Trichur, Trivandrum, Udaipur,

Varanasi, Vijaywada, Vizag

Standing Instructions (SI) Mandate

You can also pay your renewal premium through a Standing Instructions Mandate

if you have an account with HDFC Bank anywhere in India

Credit Card Facility

You can pay your renewal premium through your HDFC Bank credit card.

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Checklist while paying your renewal premium through

cheque/ demand draft

your policy number and name correctly on the reverse side of the cheque/

demand draft

We do not accept Post Dated Cheques (PDC’s) beyond the next banking day

from date of receipt

In case of any overwriting on your cheque, please countersign the same

As per RBI guidelines, Non MICR Cheques may not be acceptable at few

locations. In this scenario, please contact your nearest branch for more

details

Unit Linked Polices you can pay using Local Cheques/ Demand Drafts

other policies you can pay using either Local or Outstation cheques or

Demand Drafts

3.Weaknesses:-

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Lapsation & Revival

Your renewal premium should reach us by the due date specified in the premium

reminders. It is always advisable to pay on time so that your valuable policy

benefits can continue.

However we do understand that there may be times when you may not be able to pay the renewal premium by the due date. Therefore we allow for some additional number of days from the due date, which is specified in your policy document, to help you make your premium payment.

In case we still don’t receive your premium payments by the end of the above

mentioned period, we would do either one of the following:

Lapse” the policy – if you haven’t paid premiums for the first 3 policy

years

Either of these may mean loss/reduction of valuable benefits of your policy. refer to your policy document for details.

We do, however, allow you to restore the original benefits for a Lapsed

or a Paid up policy under certain conditions.

On receipt we will send you the details of amount, that you will have to pay

towards revival. This amount may include all or some of the outstanding

premiums, revival interest and revival processing charges

If your policy is lapsed or paid-up for more than six months or lapsed due to any

reasons like illness, accidents etc. you may need to submit a Personal Health

Statement.

E. THE COMPANY AND ITS PRODUCT LINE:-

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1. COMPETITOR BY PRODUCT

Bancassurance is the selling of insurance

products by a bank. For HDFC Standard Life Insurance, bancassurance and other

alternative channels contribute around 42 per cent of the business.

The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are HDFC,

HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda,

Saraswat Bank and Bajaj Capital.

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http://www.hdfc.com/

http://www.bajajcapital.com/

http://www.saraswatbank.com/index.jsp



HDFC BANK

HDFC Bank is the largest insurance distributor of HDFC Standard Life Insurance.

INDIAN BANK

Indian Bank enters into a strategic tie-up with HDFC Standard Life Insurance Company Ltd .INDIAN BANK with over 90 years of standing in the financial market with the reputation for excellent customer service, has entered into a strategic tie-up with HDFC Standard Life Insurance Company Ltd., the first in the private sector to receive the Certificate of Registration for foray into Life Insurance business for distribution of latter’s insurance products. A Memorandum of understanding has been signed by the Bank with the Insurance Company on 8th February 2001 to this effect. The Bank has to its strength 1377 branches spread across the country with ready built infrastructure and the expertise in marketing financial products. Initially the insurance products will be marketed through select branches in the South where the Bank has strong presence. The insurance products from HDFC Standard Life, will be competitive and customer friendly. The tie-up would benefit the Bank's customers, as they will have wider choice of life insurance policies at competitive premium

FINANCIAL POSITION OF HDFC SLIC IN FY 2008-09

HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2009. The company generated Total Business Premium Income of Rs. 5564.69 crores in FY2008-09 registering a year-on-year growth of 15%. The growth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments.

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Highlights of Financial Year 2008-09

Total Premium Income is up by 15% at Rs. 5564.69 crores as against Rs.

4858.56 crores in FY2007-08.

-- Renewal premium collected increased to Rs. 2913.58 crores from Rs.

2173.19 crores in the previous year, registering a growth of 34%.

Effective Premium Income (EPI) in respect of retail business increased by

5%, growing from Rs 2,425 crores in 2007-08 to 2,552 crores in 2008-09.

-- Alternate Channels, including bancassurance, contributed about 45% to

the Effective Premium Income (EPI).

-- A well balanced product portfolio with pension comprising over 40%

children plans around 25% and the remaining constituting protection and

savings plans,

-- Total assets under management increased to Rs. 10,595 crores, registering

a growth of 24% over FY2007-08.

-- Assets under management for the Group business have increased to Rs.

1075 crores, registering a growth of 12% over FY2007-08.

-- Company products and services are now available through a network of

595 offices serving over 700 cities and towns across the country. This is

further complemented by corporate agency relationships with public, private

and cooperative banks.

-- Strength of Financial Consultants reported year-on-year growth of 43% to

over 2,07,000 in FY2008-09 compared to 1,45,000 last financial year.

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-- The sum assured in-force for 2008-09 was Rs. 57,158 crores as compared

to Rs. 45,743 crores for the pervious year.

Knowledge Center

Our Knowledge Centre is your personal resource for information that can help you

understand the basics of insurance and help you make an informed decision about

buying a policy. This section includes details on insurance terms and concepts,

helps you analyse plans for your various needs and lends meaning to some of the

insurance jargon that you may encounter

2. Life Stages

Your insurance need will change as your life does, from starting to work to

enjoying your golden years and all the stages in between. Each one of these stages

may pose a different insurance need/cover for you. In this section, we have drawn

up the basic life stages and help you analyse various insurance needs accordingly.

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STAGE 1

Young and Single

An important stage where one lays down the foundation of a successful life ahead. Take

advantage of the time and power of compounding to ensure that you build up your

dreams. Start saving early.

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Your needs

Save for a home and wedding

Tax Planning

Save for Golden years

STAGE 2

Just Married

Marriage brings about a significant change. New dreams and new opportunities also

bring in additional responsibilities. While both of you look forward to a happy and

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secure life , it is equally important to ensure that eventualities don’t come in the way of

shaping your dreams.

Your needs

Planning for home / securing your home loan liability

Save for vacation

Save for your first child

STAGE 3

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Proud Parents Once you have children, your need for life insurance is even more. You need to protect

your family from an untoward incident. Ensure your protection umbrella takes into

account the future cost of securing your child’s dream. You will want life to go on for

your loved ones, and having enough life insurance is a way to help ensure that.

Your needs

Provide for children’s education

Safeguarding family against loan liabilities

Savings for

post-

retirement

STAGE 4

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Planning for Retirement

While you are busy climbing the ladder of success today, it is important for you to take

time and plan for your life after retirement. Having an early start for retirement planning

can make a significant difference to your savings. Think about your golden years even

before you have reached them. The key is to think ahead and plan well using your time

and money.

Your needs

Provide for regular income post retirement

Immediate Tax benefits

Lead a secure, independent and comfortable life style in your retirement years

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F. FEATURES OF THE PRODUCT & BENIFIT

HDFC Standard Life: A good cover The opening up of life insurance has given finally given a level-playing field to the

private sector.

A. N. Shanbhag, February 19, 2002

Competition in the market always proves favourable to the consumer. So it is in

the case of life insurance. After what seems like almost an eon, finally the doors of

the life insurance sector were thrown open to the private sector players last year.

The Finance Act, 2001 has thankfully cleared quite a lot of cobwebs giving a level-

playing field to both the sectors. Notable amongst the new entrants is HDFC

Standard Life Insurance, a joint venture between the global experience of Standard

Life of UK and our own HDFC.

Standard Life, founded in 1825 is amongst the forerunners of the insurance

industry worldwide, having a presence not only in the UK but also Ireland, Spain,

Germany, Austria and Canada. Voted as the 'company of the decade', Standard

Life manages assets over US$ 119 billion.

HDFC does not need any formal introduction, so strong is its brand already. After

having a significant presence in the housing finance, banking and MF industries,

this JV marks its foray into the life insurance sector.

Private sector players would only be too aware that this is the proverbial first step

of the thousand-mile journey that lies up ahead. Contending for a piece of market

share with a Goliath that LIC is, will not be an easy task unless they offer

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qualitative and innovative products at an affordable price. That they would be

pulling out all the stops to attract customers is not in doubt. Hence, this is as good a

time as any to pay attention and see what is on display.

The strategy

Too many options simply confuse the users whereas too few will surely turn them

away. HDFC Standard Life has thankfully introduced products with basic

premiums serving specific needs of all. Most products have some additional

optional value adding benefits at marginal additional premiums. The proponent is

free to choose any of the basic products along with none or some of the options as

per his needs.

Before examining the base products, let us see the options.

1.Accidental Death Benefit (ADB)

ADB provides an additional amount equal to the basic sum assured (SA) in case of

the death of the policyholder due to an accident, within 90 days of the accident.

2.Critical Illness (CI) Benefit

CI provides an additional amount equal to the SA on diagnosis of the any one of

the 6 specified critical illnesses --- cancer, coronary artery bypass graft surgery,

heart attack, kidney/renal failure, major organ transplant (as recipient) and stroke.

The sum assured is payable if the policy holder survives for 30 days after the date

of the claim.

3.Double Sum Assured (DSA) Benefit

DSA provides an additional amount equivalent to the basic SA in case of the death

of the policyholder.

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4.Waiver of Premium (WOP) Benefit

WOP basically waives the premium in case the policyholder becomes totally

disabled. However, the waiver is applicable only during the period of the disability.

5.Accelerated Sum Assured (ASA)

Upon diagnosis of any of the specified six critical illnesses, ASA provides an

amount equal to the amount payable on death.

These options must be selected at the outset while choosing the product.

Now the base.

Single Premium Bond This is basically a hybrid of insurance and investment. The

life cover is quite low and therefore it functions almost like a deep discount bond.

For a single upfront premium (read investment), the policy pays a lump sum (read

maturity value) and its tenure of 10, 15, 20 years or more at 5-year intervals. A

compound revisionary bonus is declared every year, which would be added to the

policy upon its anniversary. The future bonuses though are not guaranteed and are

dependent upon the company's experience and the conditions prevalent in the

economy.

The minimum age for buying the policy is 18 years, the maximum being 70. The

minimum SA is fixed at Rs. 25,000, the maximum being Rs. 5,00,000.

Normally, a policy acquires a paid up value (and the related surrender value) after

premiums for 3 years are paid but in this case the holding period is specified to be

just 6 months --- Excellent liquidity indeed!

6.Term Assurance Plan

The SA is payable in the case of the death of the policyholder during the term but

on survival, there are no maturity benefits. Consequently, the premium rates are

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absolutely the lowest. This is insurance in its purest form --- highest cover at

lowest cost. There was a crying need for easy availability of this product. HDFC

Standard Life deserves kudos to have catered to this need.

Amongst the optional benefits listed above, ADB, CI and ASA are available for

this plan.

7.Money Back Plan

This plan pays periodic cash lump sums during the tenure of the policy. The lump

sums, essentially a proportion of the basic SA are paid at 5-year intervals. On

survival, the basic SA plus bonus less the cash lump sums paid earlier are

provided. However, in the case of the demise of the policyholder, the basic SA plus

any bonus is provided to the family. This would be over and above any earlier

payouts. The schedule of cash lump sums as a percentage of the basic SA is

detailed in the table. Moreover, CI, DSA, ADB and WOP can be opted for if so

desired.

8.Endowment Assurance Plan

As is normal with all endowments, on the death of the life assured during the term,

the beneficiary will get the SA. On survival, the policyholder gets the SA.

From amongst the optional benefits, CI, DSA, ADB and the WOP benefit are

available along with this plan. The indicative premiums for an SA of Rs. 1 lakh for

a male life assured for a period of 20 years are detailed in the table.

9.Loan Cover Term Assurance

This is a unique product meant as a safety net in case one has taken a loan to buy a

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house. It is designed to help the family repay the outstanding loan in the case of the

death of the breadwinner.

For starters, it provides a lump sum on the death of the life assured during the term

of the plan. The difference in this case is that the lump sum is a decreasing

percentage of the initial SA. As the loan decreases, as per its payment schedule, the

cover under the policy decreases as per its own schedule.

There is a choice of paying the premium in yearly, half-yearly or quarterly modes

or even a single one time premium is payable. Amongst the optional benefits, ASA

is available along with this plan.

10.Group Term Insurance (GTI)

HDFC Standard Life also offers GTI, meant essentially for employees of an

organization. GTI is extremely convenient for an employer as he can take

insurance for all or certain categories of employees. All members of a group,

subject to some basic conditions are eligible.

GTI is used basically to provide life insurance as part of the employee benefits. It

can also cover any housing or vehicle loan given by the employer to the employee.

To sum A wise man had said that the time to mend the roof is when the sun is

shining. This is applicable to life insurance too. Today as the breadwinner you are

able to maintain a decent standard of living for yourself and your family. If you

want enough bread for the family even after the death of the breadwinner, you

should look at the Single Premium Bond. In other cases, life insurance is an

absolute necessity. Have a look at other products.

37 _____________________________________________________________________




Money Back Plan

Money Back Plan

Total Policy Number of years from policy date

Term 5 10 15 20 25

10 40%

15 30% 30%

20 25% 25% 25%

25 20% 20% 20% 20%

30 15% 15% 15% 15% 15%

Endowment Assurance Plan

Age Basic Policy Additional Premium

Years Premium (Rs.) For Optional benefits (Rs.)

CI DSA ADB WOP

20 4771 304 322 136 236

30 4835 442 388 144 300

40 5098 925 641 156 47550

5813 1890 1357 - -

5 MARKETING STRATEGIE

MARKET CONDITION OF PRODUCT IN HDFC SLIC

38 _____________________________________________________________________




When it comes to study the market condition of HDFC Standard Life Insurance, it

is quite easy to see that there is good demand for products, but the sale of Ulip

products are very good. The market share is about 65% with compare to their

competitor.

REASON FOR THEIR GOOD CONDITION:

1. Consultants hold on the market

When it comes for the case of market, there is a clear and complete hold of HDFC

SLIC Consultants.

2.Quality

HDFC SLIC provides good quality of products, which is praised by most of the

consumers. The reason for 65% of the market cover by HDFC Standard Life

Insurance is because of quality of products.

3.Demand

Demand for the product of HDFC Standard life is very high in the societies.

4.SupplySupply of product is also good, but in capturing whole market it take some time.

COMPETITORS BY COMPANY

39 _____________________________________________________________________




COMPARITIVE ADVANTAGE OVER COMPETITORS PRODUCT:

40 _____________________________________________________________________


http://www.inglife.co.in/home.aspx

http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/index5.aspx

http://www.maxnewyorklife.com/index.aspx

http://www.iciciprulife.com/public/default.htm



I compared two products, ICICI smart kid unit link and HDFC young star, in

both the policies parent is insured and child in nominee or beneficiary,

Both the policies contains same features, only additional rider is available in

smart kid is income benefit rider (IBR), how this rider works? this rider

comes in the picture when the parent expires or becomes permanent disable

at that time this rider pay 10% of sum assurance to nominee,

HDFC Youngstar offers Insurance Cover upto 20 Times of Annual

Premium. You may Pay Rs. 30000 per year & take Insurance Cover of Rs. 6

Lacs.

You may take Critical Illness Rider in HDFC Youngstar upto 65 years

Age(as it Cheaper than other ULIPS ).

The returns from HDFC Taxsaver, HDFC LT Advantage fund are better

than the returns from HDFC Standard Life Equity Fund.

HDFC Standard ULIP Returns are over 70% in last 1 year.

HDFC Youngstar with Maximum Insurance Cover of Rs.3.6 Lacs

MILESTONES IN THE HISTORY

41 _____________________________________________________________________




HDFC is India’s leading housing finance institution and has helped build

more than 23, 00,000 houses since its incorporation in 1977.

In Financial Year 2003-04 its assets under management crossed

Rs.36,000Cr.

As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The

depositor base now stands at around 1 million depositors.

Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year

Awarded The Economic Times Corporate Citizen of the year Award for its

long-standing commitment to community development.

Presented the ‘Dream Home’ award for the best housing finance provider in

2004 at the third Annual Outlook Money Awards

HDFC Standard Life Insurance is the first private life insurance company to

be granted a license by IRDA

Rated as the "Best New Insurer - 2003" by Outlook Money magazine,

India’s number 1 personal finance magazine

Rated by ‘Business world’ as ‘India’s Most Respected Private Life

Insurance Company’ in 2004.

Has the highest brand recall, close to 80% (Source: AC Neilson ORG

MARG, April 2005)

Has one of the widest branch networks with offices in over 100 cities

servicing over 440 towns

COLLABORATIONS & AFFILIATIONS:

42 _____________________________________________________________________




SUBSIDIARY AND ASSOCIATE COMPANIES:

HDFC Bank

HDFC Mutual Fund

HDFC Standard Life Insurance Company

HLSIL

HDFC Chubb General Insurance Company Ltd.

Intelnet Global Services Ltd.

Other Companies Co-Promoted by HDFC

Financial Information with regard to Subsidiary Companies

43 _____________________________________________________________________


GROUP COMPANIES BANCASSURANCE PARTNERS


http://www.hdfcbank.com/




44 _____________________________________________________________________


GROUP COMPANIES BANCASSURANCE PARTNERS

http://www.unionbankofindia.com/

http://www.indian-bank.com/

http://www.saraswatbank.in/

http://www.bajajcapital.com/

http://www.bankofbaroda.com/

http://www.hdfcfund.com/

http://www.hdfcsec.com/

http://www.hdfcrealty.com/

http://www.intelenetglobal.com/

http://www.cibil.com/



HEAD OFFICES AND BRANCHES

HEAD OFFICE: HDFC Standard Life Insurance Co. Ltd.

'Trade Star', 2nd floor,’A’Wing,

Junction of Kondivita and M.V. Road,

Andheri-Kurla Road,

Andheri (East), Mumbai - 400 059.

PHONE: (Board) (022) 2822 0055 / 6751 6666

Fax: 2822 9998 / 2822 2414

2. BRANCH LOCATIONS SITE MAP:

45 _____________________________________________________________________




3.ADVERTISEMENT AND SALES PROMOTION

46 _____________________________________________________________________


Film opens in the compound of a



47 _____________________________________________________________________


Film opens in the compound of a

Daughter: “Dad”. Father: “Bolo”Daughter: “Nayi car lene mein hee

bhalaai hai.”Dad nods in agreement without

looking up. Dad: “Hmmm…”

Daughter continues affirmatively as she signs on a cheque.

Daughter: “Aur wo bhi badi wali.”

Dad looks at her and asks.Dad: “Huh, Badi kyon?”

Daughter, walks towards him with swinging hand in air and says.

Daughter: “Kyonki Toolika Sharma chahti hai uske dad style se travel

kare.”

Dad goes back to checking the engine and says in a light hearted

tone.Dad: “Aur Extra paise dad dega

kya?”Daughter replies firmly: “Nahi.

Mere dad ki beti.”



H. Recruitment of Financial Consultants (FC) in HDFC

Standard Life

This is a good business opportunity offered by HDFC Standard Life to become a business partner and earn a good amount of money.

48 _____________________________________________________________________


Daughter: “Relax dad, plan kiya.”Dad doesn’t know what to say:

“Par...”

And hands him the cheque. Dad looks at the cheque and

questions.Dad (seriously): “Itne paise aaye

kahaan se?”

Dad doesn’t know what to say as he looks at the cheque.

Daughter pleads: “Please…dad”

Mother enters with tea. She senses something serious and

questions them.Mother: “Aree Kya hua?”

Father looks at her and says emotionally.

Dad: “Car badi ho gayi, aur beti bhi.”

Daughter smiles with pride.

Super: Unit Linked Savings PlansMVO: “Unit Linked Savings Plans

from HDFC Standard Life. zimmedari nibhao, Aaj bhi kal bhi ”



1.Business description

Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a Financial Consultant and help analyze your customer’s financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep your customers on track.

Along with being a great career move you get associated with HDFC Standard Life Insurance, India’s Most Respected Private Life Insurance Company. We at HDFC Standard Life also offer you unmatched support with various training programmes to help you excel in your endeavour.

A great career move in every way Zero investment, there is no start-up capital. You can work full-time or part-time, depending on your convenience Sunrise industry Support every step of the way At HDFC Standard Life, training is an inherent element of our support system - at no extra cost - for our new Financial Consultants

Financial Consultants are those sources of a company who have their own

relations and personal contacts among common public that they use to generate

business through. Company has certain criteria to recruit these Financial

Consultants. The steps are as follows.

He should be at least 12th passed.

He should complete IRDA training.

He should clear the IRDA exam.

He should through successfully the exam and training.

Some other criteria:

He should have good personal contacts.

He should have convincing power.

49 _____________________________________________________________________




He should be above 18th year old.

Once he through all these steps of recruitment, he becomes the legal Financial Consultant of the company and reserve the right to sale the policy to any prospect client also he is paid the commission a certain percentage. There are some reward and tour package also.

2. EXCELLENT OPPORTUNITY

Join HDFC Standard Life Insurance as a Financial Consultant and earn a rewarding career

Flexible work timings – You can work whenever you like. You can work full-time or part-time, depending on your convenience. However, the time you invest will determine your success

Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or Working Professionals.

Zero Investment - There is no start-up capital required. Be your own boss with flexible working environment, unlimited earning potential and opportunities to be part of a world class sales team.

Attractive Remuneration - Company offers excellent commissions, award and rewards for the performers. You have unlimited earning potential. Commission structure is pretty handsome and is 15-40% and renewal commission of 5% second year onwards till the policy is in force.

Certificate by IRDA- You will get world class training free of cost and certification by Insurance Regulatory Development Authority.

TRAINING

Perfects your knowledge about the insurance industry as well as our products

50 _____________________________________________________________________




Desired Profile:

Age: 18 Yrs to 65 YrsEducation: Intermediate or moreExperience: Not MandatoryType of Job: Full Time or Part Time

Documents Required:

8 photograph

Age proof (passport, Birth certificate, College Leaving Certificate, Driving License)

Address proof

Education proof

Copy of PAN Card Duely Signed

Cancelled Cheque of self

A candidate needs to bring a DD of Rs. 925/- in case of offline training and Rs.825

in case of online training towards HDFC SLIC LTD payable at Mumbai.

3.Recruitment process of FCs Fill up of Agency form IRDA Training (50 hrs)

51

_____________________________________________________________________MUENCHEN INTERNATIONAL BUSINESS SCHOOL,PUNE



IRDA Exam

Fail Pass

Exit Product Training

Traditional Pr. ULIP Product

Internal Assessment

Fail Pass

Exit Certification

4.Benefits to FCs

Financial Benefits:

Commission on issuance of every policy. Commission directly credited to bank account of FCs within 15 days. These commission varies from 7.5-40% according to plan.

52 _____________________________________________________________________




BASIC COMMISSION

First year Commission payable on regular premium conventional policies issued on or after 21st march 2007

RENEWAL COMMISSION:

Renewal commission would be paid from the 2nd year onwards on regular premium policies. Renewal commission is not payable on single premium plans.

Name of the plan Renewal commission 2nd

year onwardsEndowment Assurance plan 5%Money Back Plan 5%Children’s plan 5%Lone cover Term Assurance Plan 5%Term Assurance plan 5%Personal Pension Plan 2%

BONUS COMMISSIONBonus commission would be payable on the first year premium received and adjusted on the regular premium policies under the following plans,1.Endowment Assurance Plan2.Money Back Plan3.Children’s Plan4.Term Assurance Plan5.Lone Cover Term Assurance Plan

53 _____________________________________________________________________


Name of the plan 1st year commission

Endowment Assurance plan 40%

Money Back plan 40%

Children’s plan 40%Term Assurance plan 25%Lone cover Term Assurance plan 25%Personal Pension Plan 7.5%



Bonus commission is not payable on the single premium plans and on the policies issued under the Personal Pension Plan and all Unit Linked Plans.

Bonus commission rate would depend on financial consultant crossing the minimum RNEP(Received Net Effective Premium) within one year.

Period RNEP Bonus commission % of the 1st year Premium received

In one year 1,00,000 5%1,50,000 10%2,25,000 15%

REWARDS & RECOGNITION

Within 30 days of Licensing Consultant can become

STAR – Converted premium 2 Lacs

Silver Medal-Worth Rs 5200(approx)

RISING STAR – Converted premium of 5 Lacs

Gold Medal-Worth Rs 13,000(approx)

MILLIONAIRE STAR – Converted premium of 10 Lacs


GLOBAL STAR – Converted premium of 24 Lacs


Extra Payouts for STAR Performers

Star Performers Club

Status Bronze Silver Glod Centurion

Benefits 1%max 2.5%,max 5%,no upper limit

Graded-4.5%to8.5%

54 _____________________________________________________________________




Rs.5999 Rs.37499

Additional status retention Bonus

0.50% 1.00% 1.50%

MONTHLY & QUARTERLY CONTESTS

There are various Sales linked monthly & quarterly contests occur in which FCs has opportunity to gain something. Like

Gift Vouchers Home Appliances Two-Wheelers Gold/Diamonds Jewelry Foreign Trips Mobile Phones Laptops Cars etc.

OTHER BENEFITS

On field support- Joint fieldwork with respective SDM/BDM.

Training support – Various training modules to enhance your sales skills, interpersonal skills etc.

Marketing support – Consumer Contact Programs.55




Availability of office infrastructure for telecalling, quotations, benefits illustration etc.

Consultant corner to access illustration, sales done, and contest updates etc.

Personal email id.

I. RESEARCH METHODOLOGY

All the findings and conclusions obtained are based on the survey done in the

working area within the time limit. I tried to select the sample representative of the

whole group during my job training. I have collected data from Chartered

Accountants, Tax Consultants, Businessman, Share Brokers, Lawyers, Working

Professionals, House Wives and Retired Persons in Pune.

56 _____________________________________________________________________




1. OBJECTIVES OF RESEARCH PROJECT:

PRIMARY OBJECTIVES:

To recruit more and more Financial Consultant and to promote the benefits

those are provided by HDFC Standard Life to its Financial Consultants

To find the different way of recruiting and selecting the Financial

Consultants who can produce more and fruitful results.

To study awareness of the HDFC Standard life insurance

SECONDARY OBJECTIVES:

To determine the need and purpose of Financial Consultant.

To understand the deciding criteria for people to become Financial

Consultant.

To collect and analysis the information of prospect candidates in order to

make them appear in front of management so that they can be selected as

Financial consultant. To offer suggestions based upon the findings.

2. RESEARCH PLAN:

1. Preliminary Investigation: In which data on the situation surrounding the

problems shall be gathered to arrive at

The correct definition of the problem.

An understanding of its environment.

2. Exploratory Study: To determine the approximate area where the problem lies.

57 _____________________________________________________________________




3 RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the

problem. By analyzing the secondary data, the study aim is to explore the short

comings of the present system and primary data will help to validate the analysis of

secondary data besides on unrevealing the areas which calls for improvement.

4. DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration.

Due to time limitation and other constraints direct personal interview method is

used. A structured questionnaire was framed as it is less time consuming, generates

specific and to the point information, easier to tabulate and interpret. Moreover

respondents prefer to give direct answers. In questionnaires open ended and closed

ended, both the types of questions has been used.

5.COLLECTION OF DATA:

1: Secondary Data: It was collected from internal sources. The secondary data

was collected on the basis of organizational file, official records, news papers,

magazines, management books, preserved information in the companies database

and website of the company.

2: Primary data: All the Chartered Accountants, Tax Consultants, Insurance

Agents, Auto loan providers were personally visited and interviewed. They were

58 _____________________________________________________________________




the main source of Primary data. The method of collection of primary data was

direct personal interview through a structured questionnaire.

6. SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take

sample from the universe to know about its characteristics.

Sampling Units: Chartered Accountants, Tax Consultants, Lawyers,

Business Man, Professionals and House Wives of Pune.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

J. DATA ANALYSIS, INTERPRETATION AND PRESENTATION

1.Your Age?

TABLE

Sr. No. Category No. of

Respondents

Percentage

1 18-23 Years 20 20%

59 _____________________________________________________________________




2 24-29 Years 70 35%

3 30-35 Years 60 30%

4 35 & above 30 15%

Total 200 100%

Base 200

respondents

GRAPH

20%

35%

30%

15%

Age of Respondents

18-23 Years24-29 Years30-35 Years35 & above

Interpretation

From the table and graph above it can be seen that

20% respondent’s age are 18 to 23 years.



15% respondent’s age are 35 to above years.

2. Marital status?

TABLE

60 _____________________________________________________________________





Respondents

Percentage

1 Married 140 70%

2 Unmarried 60 30%

Total 200 100%

Base 200 respondents

GRAPH

70%

30%

Marital Status

MarriedUnmarried

Interpretation


70% respondent’s are married.

30% respondent’s are unmarried.

3. Educational Qualification?

TABLE


Respondents

Percentage

61 _____________________________________________________________________




1 Under graduate 50 25%

2 Graduate 80 40%

3 Post graduate 70 35%

Total 200 100%


GRAPH

25%

40%

35%

Educational Qualification of Respondents

Under graduateGraduatePost graduate

Interpretation


25% respondent’s are Under graduate.

40% respondent’s are Graduate.

35% respondents are Post graduate.

4. Number Of year’s Are You in Pune?

TABLE

62 _____________________________________________________________________





Respondents

Percentage

1 Less than five years 78 39%

2 More than five

years

122 61%

Total 200 100%


GRAPH

39%

61%

Staying Years in Pune

Less than five yearsMore than five years

Interpretation


39% respondent’s are in Pune is less than five year’s.

61% respondent’s are in Pune is more than five year’s.

5. Your Occupation?

TABLE

Sr. No. Category No. of Percentage

63 _____________________________________________________________________




Respondents

1 Business 40 20%

2 Profession 108 54%

3 Service 52 26%

Total 200 100%


GRAPH

20%

54%

26%

Occupation

BusinessProfessionService

Interpretation


20% respondent’s Occupation is Business.

26% respondent’s Occupation is Profession.

54% respondent’s Occupation is Service.

6. Your annual household income?

TABLE

64 _____________________________________________________________________





Respondents

Percentage

1 Less than 2 lacs 98 49%

2 Between 2 to 5 lacs 62 31%

3 Between 5to 8lacs 30 15%

4 More than 8 lacs 10 5%

Total 200 100%


GRAPH

49%

31%

15%5%

Annual Household Income

Less than 2 lacsBetween 2 to 5 lacsBetween 5to 8lacsMore than 8 lacs

Interpretation


49% respondent’s annual household income is less than 2 lacs.

31% respondent’s annual household income is between 2 to 5 lacs.

15% respondent’s annual household income is between 5 to 8 lacs.

5% respondent’s annual household income is more than 8 lacs.

7. Are you a member of a club/gymkhana?

65 _____________________________________________________________________




TABLE


Respondents

Percentage

1 Yes 84 42%

2 No 116 58%

Total 200 100%


GRAPH

42%

58%

Mebership of Club/Gymkhana

YesNo

Interpretation


42% respondent’s are member of a club/gymkhana.

58% respondent’s are not member of a club/gymkhana.

8. What is your perception about insurance sector?

TABLE

Sr. No. Category No. of Percentage

66 _____________________________________________________________________




Respondents

1 Hard and lucrative 60 30%

2 Hard but not rewarding 18 9%

3 Smooth and rewarding 82 41%

4 No idea 40 20%

Total 200 100%


GRAPH

30%

9%4

1%

20%

Perception About Insurance

1 Hard and lucrative2 Hard but not rewarding3 Smooth and rewarding4 No idea

Interpretation


30% respondent’s perception about insurance sector is Hard & lucrative.

9% respondent’s perception about insurance sector is hard but not

rewarding.

41% respondent’s perception about insurance sector is Smooth &

rewarding.

67 _____________________________________________________________________




20% respondent’s perception about insurance sector that they have no

idea.

9. Do you know about HDFC Standard Life Insurance?

TABLE


Respondents

Percentage

1 Yes 164 82%

2 No 36 18%

Total 200 100%


GRAPH

82%

18%

Awareness About HDFCSLIC

YesNo

Interpretation


85% respondent’s are known about HDFC Standard life insurance.

15% respondent’s are not known about HDFC Standard life insurance.

10. Do you have any Insurance Policy?

68 _____________________________________________________________________




TABLE


Respondents

Percentage

1 Yes 160 80%

2 No 40 20%

Total 200 100%


GRAPH

80%

20%

No. of Insured

YesNo

Interpretation


80% respondent’s have insurance policy.

20% respondent’s do not have insurance policy.

11. Name of Insurance Company?

69 _____________________________________________________________________




TABLE


Respondents

Percentage

1 LICI 104 65%

2 ICICI 16 10%

3 HDFC SLIC 8 5%

4 OTHERS 32 20%

Total 160 100%


GRAPH

65%10%

5%

20%

No. of Respondents

LICIICICIHDFC SLICOTHERS

Interpretation


65% respondent’s are insured by LICI.

10% respondent’s are insured by ICICI.

5% respondent’s insured by HDFCSLIC.

20% respondent’s insured by OTHERS.

70 _____________________________________________________________________




12. Do you hold any license of any insurance company?

TABLE


Respondents

Percentage

1 Yes 70 35%

2 No 130 65%

Total 200 100%


GRAPH

35%

65%

License Holder of Insurance Co.

YesNo

Interpretation


35% respondent’s are holding license of any insurance company.

65% respondent’s are not holding license of any insurance company.

13. Are you satisfied with the company?

71 _____________________________________________________________________




TABLE


Respondents

Percentage

1 Yes 42 60%

2 No 28 40%

Total 70 100%

Base 70 respondents

GRAPH

60%

40%

Satisfied License Holder

YesNo

Interpretation


60% respondent’s are satisfied with their insurance company.

40% respondent’s are not satisfied with their insurance company.

72 _____________________________________________________________________




14. Do you know about HDFC Standard Life Insurance recruitment policies related

to financial consultant?

TABLE


Respondents

Percentage

1 Yes 82 41%

2 No 118 59%

Total 200 100%


GRAPH

41%

59%

Knows about HDFCSLIC recruitment policies

YesNo

Interpretation


41% respondent’s are known about HDFC Standard Life Insurance

recruitment policies related to financial consultant.

73 _____________________________________________________________________




59% respondent’s are not known about HDFC Standard Life Insurance

recruitment policies related to financial consultant.

15. Will you be interested to become Financial Consultant?

TABLE


Respondents

Percentage

1 Yes 60 30%

2 No 140 70%

Total 200 100%


GRAPH

30%

70%

Interested to Become Financial Consultant

YesNo

Interpretation


30% respondent’s are interested to become financial consultant.

70% respondent’s are not interested to become financial consultant.

74 _____________________________________________________________________




16. Would you like to earn an additional income through a business opportunity

with HDFC STANDARD LIFE?

TABLE


Respondents

Percentage

1 Yes 54 90%

2 No 6 10%

Total 60 100%

Base 60 respondents

GRAPH

90%

10%

Willing To Earn Additional Income

YesNo

Interpretation


75 _____________________________________________________________________




90% respondent’s are interested to earn additional income.

10% respondent’s are not interested to earn additional income

K. SWOT Analysis :-

HDFC and Standard Life came together for a possible joint venture, to enter the life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995, the companies signed a 3-year joint venture agreement.

1. STRENGTH

1. Domestic image of HDFC supported by Prudential’s international image is strength of the company. 2. Strong and well spread network of qualified intermediaries and sales person. 3. Strong capital and reserve base. 4. The company provides customer service of the highest order.

76 _____________________________________________________________________




5. Huge basket of product range which are suitable to all age and income groups. 6. Large pool of technically skilled manpower with in depth knowledge and understanding of the market. 7. The company also provides innovative products to cater to different needs of different customers.

2. WEAKNESS

1. Heavy management expenses and administrative costs. 2. Low customer confidence on the private players. 3. Vertical hierarchical reporting structure with many designations and cadres leading to power politics at all levels without any exception. 4. Poor retention percentage of tied up agents.

3. OPPORTUNITIES

1. Insurable population –According to ING only 10% of the population is insured, which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured.2. There will be inflow of managerial and financial expertise from the world’s leading insurance markets. Further the burden of educating consumers will also be shared among many players. 3. International companies will help in building world class expertise in local market by introducing the best global practices.

4. THREATS

77 _____________________________________________________________________




1.Other Private Insurance Companies Also vying For The Same uninsuranced Population.

2. Big Public Secter insurance Companies Like LIC India, National insurance Company Ltd, Oriented Insurance Ltd, New India Assurance Company Ltd, And United Insurance Company Ltd. People Trust Them And go to them more.

3. Poaching of Customer by other companies.4. Most People donot understand the need or are not willing to take

insurance policies in general.

L. CONCLUSIONS & SUGGESTIONS

1. CONCLUSIONS:

HDFC Standard Life, the insurance arm of HDFC is expected to go on

stream. Promoted by HDFC & Standard Life, already has good number of

employees on board and is recruiting Financial Consultants heavily to take the

headcount to many more. It is on the brim of increasing its client through its

attractive schemes and offer.

The project opportunities provided was market segmentation and identifying

prospective clients in potential geographical location and for recruiting them as

78 _____________________________________________________________________




financial consultant so to explore new Business Opportunity. Through this project,

it could be concluded that people are not much aware about the various benefit of

being Financial Consultant that are currently prevailing in the insurance industry.

Insurance was considered as unsought good which require hard core selling,

but in changing trend in income and people becoming financially literate, the

demand for insurance is increasing day by day. So, it is the company that first

approaches gets its share of reward. Proper after sale service can help the advisors

to generate more business. Gradually people are realizing the fact that insurance is

not a necessary evil but means to attain worry free life.

This activity much attract unemployed people as for them a source of

income is a great help for developing there future. Company’s promotional

activities for recruiting Financial Consultant are also very less.

So, at last the conclusion is that there is tough competition ahead for the

company from its major competitors in terms of number of Financial Consultants.

Last but not the least I would like to thank HDFC SLI for giving me an

opportunity to work in the field of Financial Consultant. I hope the company finds

my analysis relevant.

2. SUGGESTIONS:

79 _____________________________________________________________________




Finally some recommendations for the company are as fallows:-

To make people aware about the benefit of becoming HDFC Standard Life’s

Financial Consultant, following activities of advertisement should be done

through

1. Print Media.

2. Hoarding & Banners.

3. Stalls in Trade Fares

4. Distribution of leaflets containing details information.

5. Company can recruit sales promoters so that maximum information

can be provided to the potential client.

By showing additional and alternative income source along with various

schemes for Financial Consultant in the company so that more and more FC

can be recruited.

Free life cover for every active Financial Consultant.

Discounted rate premium for its family members.

Make people understand about the meaning of the IRDA authorization and

its validity.

Company should organize the program in the society, so that people will be

aware about the company

80 _____________________________________________________________________




Separate time slot for Working Professionals, House Wives and Retired

people.

Agency of non-life products should also be provided along with life.

Company should open more branches in different cities

81 _____________________________________________________________________




M. ANNEXURE

Dear Sir/Madam,

I am a student of MUENCHEN INTERNATIONAL BUSINESS SCHOOL, Pune and presently doing a market survey “MARKET RESEARCH ON FINANCIAL CONSULTANTS FOR HDFCSLIC, PUNE”. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. Name: ………………………………………………………………………..

Address: ……………………………………………………………………..

Contact No :®………………( O)……………… (M)………………………

City: ………...............Pin: ………………….State: ……………………….

.

1. Your Age: ____________________

2. Education Qualification.

Undergraduate □

Graduate □

Post graduate □

82 _____________________________________________________________________




3. Marital Status.

Married □

Single □

No. of Children: __________

4. Number Of year’s Are You in Pune.

Less than five year’s □

More than five year’s □

5. Occupation.

Business □

Profession □

Service □

(Please mention below the type of business/profession you are in incase of service please

mention your organization name and designation)

6.Your annual household income.

<than 2 lack □

Between 2 to 5 lack □

Between 5 to 8 lack □

>than 8 lack □

7.Are you a member of a club/gymkhana?

83 _____________________________________________________________________




Yes □

No □

If yes, Name of the club /gymkhana_______________________________________

8. What is your perception about insurance sector?

Hard &lucrative □

Hard but not rewarding □

Smooth &rewarding □

No idea □

9. Do you know about HDFC SLIC?

Yes □

No □

10.Do you have any insurance policy?

Yes □

No □

11.Name insurance company?

LICI □ ICICI

HDFC SLIC □ OTHERS

If others, please specify___________________________________________________

12. Do you hold any license of any insurance company?84




Yes □

No □

If yes, please specify which company________________________________________

Reason______________________________________________________________

13. Are you satisfied with the company?

Yes □

No □

Reason specify_________________________________________________________

14. Do you know about HDFC SLIC’s recruitment policies related to financial consultant?

Yes □

No □

15. Will you be interested to become financial consultant?

Yes □

No □

16. Would you like to earn an additional income through a business opportunity with HDFC

STANDARD LIFE?

YES □

NO □85




Date:

Place: Signature

Thank You

N. BIBLIOGRAPHY

The following companies and association’s web sites were referred while collecting information used in the research.

1 . Internet Source • http://www.statebankofindia.com • http://www.birlasunlife.com • http://www.utibank.com/ • http://www. Hdfcinsurance.com • http://www.licindia.com • http://www.hdfcbank.com • http://www.irdaindia.org

2. Books/Magazines Refferd

Study Guide- Principles & Practices of Life Insurance By AIMA.

Books Published By INSURANCE INSTITUTE OF INDIA.

LIFE INSURANCE By Mc Gill.

INSURANCEWATCH.

MONEYOUTLOOK.

3. Reports/Articles Reffered

86 _____________________________________________________________________


http://www.irdaindia.org/



Report: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY Dec 2008

87 _____________________________________________________________________



Recruiting & selection of FC's in HDFC SLIC By VINOD final

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